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Inter Tech Corporation needed financing to build a new manufacturing plant. On June 30th of this year, Inter Tech issued $2, (payments due on December 31st and June 30th). The effective interest rate was 8%. What amount in interest expense did Inter Tech record for the June 30 payment in the next year? $76,398 $65,250 O $77,327 O $87,000 O None of these are correct.

Inter Tech Corporation needed financing to build a new manufacturing plant. On June 30th of this year, Inter Tech issued $2, (payments due on December 31st and June 30th). The effective interest rate was 8%. What amount in interest expense did Inter Tech record for the June 30 payment in the next year? $76,398 $65,250 O $77,327 O $87,000 O None of these are correct.

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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InterTech Corporation needed financing to build a new manufacturing plant. On June 30th of this year, Inter Tech issued $2,175,000 of 8-year bonds with a 6% coupon rate (payments due on December 31st and June 30th). The effective interest rate was 8%. What amount in interest expense did Inter Tech record for the June 30 payment in the next year? $76,398 $65,250 $77,327 $87,000 None of these are correct. Clear my selection
Transcribed Image Text:InterTech Corporation needed financing to build a new manufacturing plant. On June 30th of this year, Inter Tech issued $2,175,000 of 8-year bonds with a 6% coupon rate (payments due on December 31st and June 30th). The effective interest rate was 8%. What amount in interest expense did Inter Tech record for the June 30 payment in the next year? $76,398 $65,250 $77,327 $87,000 None of these are correct. Clear my selection
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